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A stepped-up basis can be higher than the before-death cost basis, which is the benefactor's purchase price for the asset, adjusted for improvements or losses. Because taxable capital-gain income is the selling price minus the basis, a high stepped-up basis can greatly reduce the beneficiary's taxable capital-gain income if the beneficiary ...
Generational wealth -- the various financial assets that are passed down through families to children, grandchildren and beyond -- can come with pretty severe tax burdens for heirs. Estate...
Under new 2022 limits, individuals can now give up to $12.06 million tax-free to their children and other nonspousal beneficiaries during their lifetime or upon their death, MarketWatch reported.
The U.S. generation-skipping transfer tax (a.k.a. "GST tax") imposes a tax on both outright gifts and transfers in trust to or for the benefit of unrelated persons who are more than 37.5 years younger than the donor or to related persons more than one generation younger than the donor, such as grandchildren. [1]
After years of uncertainty, the Internal Revenue Service finalized rules on Thursday to make clear that people who inherit retirement accounts have 10 years to spend down the funds and, in many ...
The general rule in § 1041(a) is that no gain or loss shall be recognized on a transfer of property from an individual to a spouse; [1] or a transfer of property to a former spouse if the transfer is incident to the divorce.
After a grantor passes away, becoming the trustee can be daunting, especially if you're responsible for distributing property. Houses are among the most valuable assets in a family for financial ...
The loss is not recognized at the time of the transaction, but must be carried forward in the form of a higher basis on the property received. 1031(d) defines the basis calculation for property acquired during a like-kind exchange. It states that the basis of the new property is the same as the basis of the property given up, minus any money ...